Markets fail to maintain gains, legal stoush looms

November 11, 2020

The rally was huge but short-lived after the announcement from Pfizer that their potential vaccine proved 90% effective in trials. Where to now for markets?

The EURUSD remained largely flat overnight after beginning the day at $1.18122. The pair edged up to a high of $1.18421 mid-session before falling away to lows of $1.17795 two hours later. It regained some of those losses, eventually closing at $1.18167. It is now trading at $1.18218. Things were different for the GBPUSD when it opened at $1.31628. Upon dipping to an early low of $1.31536, the pair rallied to a high of $1.32779 late in the session. It has come off those highs and is now trading at $1.32617.

After giving up most of its early gains on Monday, the Dow steadied itself, producing modest gains overnight. It started the day at 29,199.21 and slipped to early lows of 28,883.39. Climbing off those lows, the Dow marched to a late high of 29,492.26. It is slightly off those highs and is now trading at 29,379.30. The Dax opened at 12,978.92 and fell to lows of 12,873.22 early. Bouncing off those lows, the Dax powered its way to a late high of 13,238.72. It is now trading 13,135.70.

The day ahead sees focus remain on the US election and legal challenges to the result launched by Donald Trump. He has launched legal challenges in several states over possible ballot fraud. Until these legal issues are resolved, the US remains in limbo as there is a small chance that some election results may be overturned.

Data published today includes:

Japan – Prelim Machine Tool Orders

NZ – Official Cash Rate, RBNZ Rate Statement, Monetary Policy Statement and Press Conference


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